There are only a few days left until the highly anticipated bitcoin (BTC) halving and it continues to generate a lot of reaction and reports. According to a latest report from Bybit, the flagship crypto is expected to become rarer than gold after the halving.
Bitcoin soon to be twice as rare as gold?
The most popular precious metal, gold is about to be overtaken by bitcoin in terms of scarcity. In any case, this is what Bybit, one of the largest crypto exchanges, believes. In a report discussing halving, Bybit analysts predict that bitcoin will become twice as rare as gold. Indeed, after each halving, the flagship cryptocurrency becomes rarer. However, the phenomenon should be more widespread this time.
Based on the stock-to-flow (S2F) ratio, which measures scarcity, bitcoin should reach a record scarcity level. Indeed, the S2F ratio of the queen of cryptos is around 56 before the halving, while that of gold is at 60. Once the halving takes place, the S2F ratio of bitcoin should increase to 112. is everything that the Bybit report indicates.
˂˂Each halving reinforces the narrative that bitcoin is not just a currency, but a rare digital asset, similar to digital gold. This upcoming halving in 2024 will propel bitcoin into an era of unprecedented scarcity, making it twice as rare as gold. said Ben Zhou, co-founder and CEO of Bybit.
Towards a new record high for bitcoin after the halving?
After the halving, the bitcoin supply squeeze is expected to intensify. This will lead to the rapid depletion of exchange reserves. According to the report, there are only 2 million BTC in exchanges. If we invest 500 million daily in Spot Bitcoin ETFs, which is equivalent to 7142 bitcoins which will leave the reserves each day, it will only take 9 months to exhaust all the reserves.
Taking this data into account, the Bybit report indicates that we should not be surprised to see that the price of bitcoin rises before the halving. This increase could continue even after the event until reaching a record high.
We still have to put things into perspective. It is true that after previous halvings, the price of bitcoin has often soared, but we must be careful for 2024. According to analysts, the recovery will be much less remarkable than in the past. This is an uncertain cycle and would be difficult to predict with certainty the effects of the upcoming event.
With the halving fast approaching, we should be entering a new era for bitcoin. What might happen after April 20 is still uncertain, but bitcoin scarcity is expected to reach an all-time high.
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